Jason Gabelman, an analyst from TD Cowen, maintained the Sell rating on Delek US Holdings (DK – Research Report). The associated price target remains the same with $10.00.
Jason Gabelman has given his Sell rating due to a combination of factors, including Delek US Holdings’ unexpected increase in operating expenses for the second quarter, which contradicted expectations of a decline due to reduced maintenance activities. Despite the company’s earnings surpassing expectations, the forward guidance indicated elevated operating expenses, contributing to concerns about the company’s financial health.
Additionally, Gabelman highlighted the company’s ongoing efforts to improve cash flow, which are not expected to be fully realized until the second half of 2025. The pursuit of small refinery exemptions and the potential value unlock through MLP deconsolidation were noted, but these initiatives depend on external factors and may not materialize as anticipated. Consequently, the combination of these uncertainties and financial challenges led to the Sell rating with a price target of $10.
Gabelman covers the Energy sector, focusing on stocks such as BP, Equinor ASA, and Shell. According to TipRanks, Gabelman has an average return of 5.6% and a 50.29% success rate on recommended stocks.
In another report released on April 24, Morgan Stanley also maintained a Sell rating on the stock with a $14.00 price target.